Planned Saddlehorn Crude Oil Pipeline to Add 50-Mile Segment

Researched by Industrial Info Resources (Sugar Land, Texas)--Developers of the Saddlehorn pipeline system to move crude oil from Colorado's Denver-Julesburg (DJ) Basin will push ahead with a 50-mile extension in the Centennial State.

Industrial Info is tracking five Saddlehorn projects with a total investment value of $800 million.

The 16-inch-diameter extension from Platteville to Carr, Colorado, will provide local shippers with more access to the system, according to Saddlehorn Pipeline Company, a joint venture that was formed to construct, own and operate the 600-mile pipeline from Platteville to storage facilities in Cushing, Oklahoma. Magellan Midstream Partners LP (NYSE:MMP) (Tulsa, Oklahoma), Plains All American Pipeline LP (NYSE:PAA) (Houston, Texas) and a subsidiary of Anadarko Petroleum Corporation (NYSE:APC) (Houston) make up the joint venture.

The 20-inch pipeline from Platteville to Cushing will start with a capacity of 200,000 barrels per day (BBL/d) and will eventually be able to move 400,000 BBL/d, according to its developers. Construction would kick off in third-quarter 2015, with completion in second-quarter 2016.

For related information, see May 6, 2015, article - Magellan Midstream Boosts 2015 Growth Capex, Sees Drop in Quarterly Profit and June 10, 2015, article - Rocky Mountains Regions Readies for Almost $7 Billion in Project Kickoffs in Third-Quarter 2015.

The Carr extension is estimated to cost between $80 million and $100 million, according to a press statement by Saddlehorn Pipeline Company.

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